Q4 2020 Perdoceo Education Corp Earnings Call
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Good day and welcome to the produce you Education Corporation fourth quarter 2020 earnings conference call and webcast all participants will be in a listen only mode.
Should you need assistance, please signal a conference specialist by Chris and the Starkey followed by zero.
After todays presentation, there will be and opportunity to ask questions to ask a question you may press to stores and one <unk>.
Please note that this event is being recorded I would now like to turn the conference every Dwight Turk. Please go ahead Sir.
Thank you good afternoon, everyone and thank you for joining us for our fourth quarter and full year 2014 earnings call with me on.
On the call today is Todd Nelson, President and Chief Executive on Speaker.
And then she cheap.
Chief Financial Officer.
This conference call is being webcast live.
Ladies and gentlemen.
Uh huh.
Cash replay will also be available on our site and you can always contact the alpha IR group for Investor relations per quarter.
Let me remind you that this afternoon's earnings release and remarks made today include forward looking statements as defined and pets from 'twenty. One theory is it changing.
And for me.
These statements are based on assumptions made by and information currently available to her Nokia and been painful and involve risks and uncertainties that could cause actual future results performance and trends.
Price is not definitive and P.
And for me, that's us and them.
And by these things.
These risks and uncertainties include but are not limited to those factors identified and Sanofi and the annual report on form 10-K for the year ended December 31, 2020, and subsequent filings with Securities and exchange information, except as expressly required by the thing here is laws the company undertakes.
No obligations on those factors or any forward looking statements to reflect future events and all of them as well.
And the changing circumstances or for any other reason.
And in addition, today and from a superb and non-GAAP financial measures, which are intended to supplement and not substitute for the most directly comparable GAAP measures and.
The earnings release and accompanying today's call contains financial and other quantitative information to be those sorts of day wells on.
Reconciliations of GAAP to non-GAAP measures is available and the Investor Relations page and the company's website with that I'd like to talk and turn the call on it as Todd Nelson Huh.
Thank you Wyatt.
Afternoon, and thank you for joining us today.
Before we get started I'd like to offer my sincerest thoughts and well wishes.
So all of those who have been impacted by the global pandemic.
Health and wellbeing of our students faculty and employees and communities remains our top priority as we continue to serve and educate our students.
The pandemic and the resulting social distancing requirements and further reinforced the validity.
And validated and the benefits of online learning.
And I believe that our primarily online universities and programs are resonating well with prospective learners.
We have seen increased adoption of online learning and both students and their academic institutions are seeing the benefits of the real time engagement learning and flexibility that comes with all my money.
And these benefits are especially valuable for non traditional members, including working adults.
Now to our operating results.
Fourth quarter operating results, Mark a solid year and and the 2020 and the multiyear progress has further validated our strategy of investing and student learning technology and student serving processes, which we believe positively impact academic outcomes and student experiences.
Some highlights from the fourth quarter and full year include.
All of our students are taking classes online and are being well served by our employees who transitioned to remote work during the first half of last year.
Both our students and employees are well supported by our scalable and innovative technology infrastructure.
From a prospective student interest for our programs has remained strong.
And we continue to make investments and technology data analytics and student support processes.
On the academic from our universities hired additional faculty members and ending the year with more full time and adjunct faculty than they have had for several years.
Teaching you and are you have redesigned over 500 courses during the year and made updates to adaptive learning maps.
These maps are essentially tailored path for each student that allows them to monitor the progression through the.
Though our academic program.
As discussed previously technology is an enabler and a differentiator for us.
We continue to invest and our student and faculty mobile App and with an approximate 95 per cent adoption rate. The messenger feature is now a principal source of communication with students on a variety of academic related and other topics.
Students are now able to open there and telepaths classes and the App and can also tech support and also reach tech support as well as other learning materials, such as third party books and library resources directly from the App.
Further.
Our use of artificial intelligence technology is enabling us to provide students with a more targeted and relevant experience and we continued to expand its use and explore its application throughout our student platforms.
We have also improved the efficiency and effectiveness of our student recruiting process to identify and attract prospective students that we believe are more likely to succeed and one of our academic programs.
We believe these initiatives will lead to better academic outcomes and student experiences.
Turning to our tried and acquisition the acquisition of the assets are frightened International University International and the subsequent creation of American Intercontinental University system.
We're major milestones in 2020.
By incorporating try and university as part of ARU, and we were able to diversify our offerings.
Typically with graduate level programs, while maintaining my unique student experience from each University.
We're very pleased on how this is working and will continue to leverage talent and share best practices to further enhance our students educational experiences.
Before turning the call over to Ashish.
I'd like to touch briefly on our investment strategy for 2021.
Supporting our objective of sustainable and responsible growth, we will continue to make investments and technology data analytics.
Academic and student support processes.
We believe these investments have been successful and positively impacting academic outcomes and student experiences.
Given the success of these ongoing investments and enabled by a strong balance sheet.
We are planning additional investments to expand our corporate partnership team as well as introduce shorter duration programs.
First we intend to invest incremental resources across our universities to further support and grow our corporate partnership efforts.
Note that over the past few years, we've had significant significant success in this area and as of December 31, approximately 20% of our total student enrollments at <unk> come from these partnerships.
Second we intend to further develop and grow shorter duration programs.
The pandemic is not only supported on migration to online learning, but its also created significant demand for Upskilling and Reskilling.
Lenders are looking for ways to elevate their skills and without long term commitment of time and incurring debt and we believe our shorter duration programs would allow them to do that.
Tried and has already had some success with these programs and we will further leverage its expertise to expand and grow these programs first and try and then possibly across our other universities.
Regarding the current political and regulatory landscape as with any new administration. We are closely monitoring the new appointees and various education rules and the policies that are being considered our focus is and will continue to be on educating and providing support to our students.
So that they learn and stay in school and complete their academic program.
We look forward to working with the New administration as we continue to serve and educate students to help them fulfill their academic goals.
But that said I would like now to turn it over to Ashish Ashish.
Thank you Todd.
I will review the full year and fourth quarter results and then discuss on our balance sheet and 'twenty and 'twenty one outlook before handing the call back to Todd for his closing remarks.
Please note that all comparisons I discussed on versus the comparative prior year period, unless otherwise stated.
Before I begin a quick reminder, about year over year compatibility operating results from <unk> now reflect the planned acquisition commencing on March 2nd and 2020.
Now for an overview of our operating results.
For the full year 'twenty and 'twenty total company operating income increased 65, 3% to one and 42 $9 million as compared to an operating income of $86 $5 million.
We believe adjusted operating income, which excludes certain significant and noncash items and it's more reflective of the underlying operating performance.
This measure it came in at $159 million for the year exceeding our latest outlook range of $154 million $255 $5 million and reflecting an increase of 18, 4% versus the prior year.
Net income for the year was $124 $3 million or $1 74 per diluted share.
Adjusted earnings per diluted share, which again, we believe is more indicating on the underlying operating performance was up 13, 9% $2 56.
Excluding legal settlements this improvement and operating performance was primarily a result of enrollment growth at both fee to you and they are you the acquisition of trade and University reduced legal fees and reduced expenses associated with our closed campuses.
Partially offsetting these items were ongoing investments and marketing academics and other student serving functions.
No debt for 2019, and 2000 and 'twenty, we have been adjusting for certain expenses related to our closed campuses.
As of the end of 2020 substantially all of the leases for our closed campuses how ended and expenses associated with these closed campuses will be immaterial moving forward.
As a result for 'twenty and 'twenty, one we will no longer include adjustments for any expenses related to closed campuses when presenting adjusted operating income or adjusted earnings per diluted share.
I will further address this later in my prepared remarks.
Overall, we ended the year on a good note with fourth quarter adjusted operating income of $40 2 million versus $34 $6 million and adjusted earnings per diluted share a 39 cents versus 33 cents.
Moving on to some more details around the 'twenty and 'twenty results.
Total company revenue was $687 $3 million per year.
And which reflects an increase of nine 5% from six to $27 $7 million.
And with fourth quarter revenue up 8% versus the prior year quarter.
As it relates to all of our segments.
Full year revenue at <unk> was up three 4% to 405 $5 million per year supported by increased student enrollments.
Full year operating income of her and $38 $5 million was up 27.5%.
Excluding the prior year settlement expense of $18 $6 million operating income would have grown by $11 3 million or eight 9%.
Primarily driven by revenue growth.
Operating expenses were higher as a result of increased investment and marketing and student support processes.
Turning to our U revenue increased 19, 5% to 281 $4 million for the year as a result of the tried and acquisition and student enrollment growth.
On your operating income of $38 million, a $38 million was up 87, 8% versus the prior year, but excluding the $11 4 million legal settlement expense recorded in the prior year operating income would have been up 10, 8%.
For the fourth quarter operating income increased nine 6% versus the prior year.
Included in the operating income is approximately zero point $8 million for the quarter and $2 $8 million per the year related to the amortization of definite life intangible assets and.
And were established as part of the purchase price accounting related to the fight and acquisition.
A quick note on bad debt.
For the full year total company and bad debt expense as a percentage of revenue was relatively in line with the prior year.
And while we continue to expect quarterly fluctuations and bad debt levels. We are pleased with the stabilization and this area as we focus on improving from a retention and financial aid process for our students.
Now, let me spend a few minutes on student enrollments.
Student enrollments at <unk> grew by four 2% for the year, primarily supported by new enrollment growth of seven 4% for the full year and.
And three six per cent for the fourth quarter.
We believe these positive results reflect the investments across our student enrollment and support functions, which are all in us to effectively serve the prospectus children and Chris we are experiencing.
Total student enrollments at <unk> increased 39, 2% per the year supported by new enrollment growth of 37 three per cent for the full year and 54 eight per cent for the fourth quarter.
The positive impact of the tried and acquisition as well as underlying organic growth attributed to the enrollment increase versus the prior year quarter.
Please note that for the fourth quarter as well as for the full year 'twenty and 'twenty the academic calendar for American Intercontinental University was relatively comparable to the respective periods in 2019.
With a consistent number of revenue and enrollment days for each period.
And.
Staying with the academic calendar.
We believe that the academic calendar redesign at <unk> has been well received by students and faculty.
Recall that the academic calendar redesign was intended to improve student experiences and engagement by strategically placing breaks between sessions and providing more opportunities for students to continue with their academic programs.
With that in mind, we are now redesigning C to use academic calendar beginning with the first quarter of 2021 similar to how we previously redesign AI use calendar.
As a result this may impact you.
Year over year comparable or do you have revenue and enrollment days at sea to you.
I will talk more about this why are you discussing the 'twenty 'twenty, one and outlook.
Now moving on to corporate and other which includes residual operating losses associated with closed campuses.
Operating losses for the year were $26 $4 million versus $38 $6 million and the prior years with the improvement primarily driven by reduction in operating losses at close campuses.
The prior year also included a legal settlement charge of $7 $1 million for the Oregon arbitration matter.
Now to income taxes.
For the fourth quarter and full year, we recorded a provision for income taxes of $9 $8 million and $25 million respectively.
This resulted in an effective tax rate of 26, 6% and 15, 3% for the quarter and the full year respectively.
Recall that the full year tax rate was positively impacted by the release of approximately $16 million of a previously recorded valuation allowance against a portion of our foreign tax credit for and tax credit.
Carryforward supported by an overall domestic loss accounts.
To further elaborate we expect to utilize all of the Hunter and $9 $7 million of federal net operating loss carry forward and $5 7 million of foreign tax credits in 'twenty and 'twenty.
And the remaining $10 3 million of our foreign tax credit for credit carry forward in 'twenty and 'twenty, one to partially offset 2021 federal tax liability.
As a result, while we did not pay any federal income taxes for 'twenty and 'twenty.
We do anticipate paying estimated federal income taxes, beginning with the first quarter of 2021.
Separately, we expect our 'twenty 'twenty, one tax rate to be between 25, and a half and 26, 5%.
This full year estimated rate is negatively impacted by increase in tax reserves and the tax effect of expenses that are not deductible for tax purposes.
Now to our balance sheet net.
Net cash provided by operations was $180 million per year as compared to cash provided of 73 point and $1 million from the prior year.
We ended the quarter with $410 $4 million of cash cash equivalents restricted cash and available for sales short term investments.
This represents an increase of.
And $16 $2 million over a year and 2019 and.
And was primarily driven by positive cash flows from our University operations.
Some of the key uses of cash in 2020 include.
Detroit and acquisition for approximately $39 $8 million.
Payments related to the settlement of the Oregon arbitration matter.
Annual and long term incentive payments share repurchases and capital expenditures.
Speaking of capital expenditures.
Capital expenditures were approximately $9 $8 million per year as compared to $5 2 million in the prior year.
For full year 'twenty 'twenty, one we foresee capital expenditures to be approximately 1.5% to 2% of revenues.
Finally, let us discuss our outlook for the full year, 'twenty and 'twenty, one which incorporates the additional investments that Todd discussed earlier.
Also as discussed operating activity related to closed campuses will be immaterial going forward.
As a result, we will not include any adjustments for our closed campuses.
When calculating adjusted operating income and adjusted earnings per diluted share for 'twenty and 'twenty, one and 2020.
And the 'twenty and 'twenty amounts will also be presented on a similar basis to maintain comparability.
This revised approach is reflected and our outlook below and in today's earnings release.
With that said, our 'twenty outlook for 'twenty and 'twenty. One consists of the following.
Full year adjusted operating income outlook to be in the range of $165 million $271 million as compared to $157 $7 million and 2020.
Reflecting expected growth of approximately $4 six to eight 4% versus the prior year.
Yeah.
This outlook reflects our expectation of total enrollment growth for both institutions and 2021.
Adjusted earnings per diluted share to range between $1 58, and <unk> 64 per diluted share versus dollar and 55 and 2020.
For the first quarter of 'twenty and 'twenty, one we expected adjusted operating income to be in the range of $43 million to $44 million as compared to $39 9 million and the prior year quarter.
With adjusted earnings per diluted share.
To be and the range between 42% and 43 cents per diluted share.
She is 41 cents and the first quarter of 2020.
Okay.
Finally, a comment on new student enrollment.
Given the academic calendar redesign first at Au and now at sea to you quarterly new enrollment comparable D will be impacted and may not be reflective of the underlying operating performance.
As a result, we will no longer report new student enrollments and will focus our discussion on total student enrollments.
We believe total student enrollment continues to reflect.
Our focus on enhancing student experiences retention and academic outcomes.
As well as our underlying operating performance and enrollment growth.
Let me conclude by spending a few minutes on our balanced approach to capital allocation.
We are focused on building a strong balance sheet, while prudently evaluating organic and inorganic opportunities and.
And also returning capital to stockholders.
We will continue to focus on maintaining adequate liquidity and evaluating inorganic strategies, including the acquisition of high quality educational institutions on programs.
And investing in student serving initiatives and academic programs at our universities.
Ultimately our goal is to deploy resources and the most effective and efficient manner that we believe will lead to increased shareholder value and allow us to continue to provide a quality education to our students.
Please refer to the earnings release filed today for important information about the key assumptions and factors underlying this discussion from today's call as well as the GAAP to non-GAAP reconciliations.
With that I will turn the call back over to Todd for his closing remarks. Thanks.
Thanks.
Thanks Ashish.
In summary, our 'twenty and 'twenty results show, our steadfast commitment to the success of our students and sustainable and responsible growth our priorities for 'twenty and 'twenty one remain largely the same.
We'll continue to invest and or academic institutions and focus on positively impacting retention and academic outcomes across the universities.
Now I'd like to thank all of our employees faculty and students for their hard work and dedication this year.
We will now open the line for any analyst questions.
And we will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two once again, but it started and one to ask a question.
And our first question today will come from Daniel Moore with CJS Securities. Please go ahead.
Thank you and good afternoon, Todd and Ashish, Thanks for taking the questions.
You bet.
I wanted to start with new enrollment trends clearly strong across both institutions.
Can you delineate I know, it's hard but you know how much the pandemic impacting demand for online programs from a macro sense as it's driving that versus your internal investments and technology, a recruiting and retention et cetera and.
And I know, it's difficult, but any color on that would be helpful.
Sure.
Thank you and yeah. It is a combination of both we continue to see as we said on my earlier remarks that we continue to see good and.
Interest and I think that again, the viability and the necessity of quality online education and has helped improve the demand on the second yeah. So I think there's as Ashish mentioned, we have been more effective and our technology and other applications, but I think allow us to better serve our students and I think it helps them and their decision making process. So.
And again hard to quantify how much but.
But I think again, the strong demand in particular and probably have more of an immediate impact.
But both have contributed.
That's helpful and looking forward our guidance.
And is usually typically conservative obviously, but how much of an increase in investment spending and those areas. We just talked about tech data analytics academics student experiences how do we think about the either a dollar terms or percentage terms.
Year over year increase in AR and in investment spend that's embedded in the 'twenty one guidance.
Sure and and I and if if we can and I can have and she's respond on any of that second part but and.
Yes, we we felt like again based on demand and based on where we feel the interest is that it was worthy of investing.
We're significantly and you have and the past, especially and certificates or shorter duration programs.
And also in and and our corporate partnerships and we're seeing good demand and.
And we want to take advantage of that but to do that you. Yes. It does take more investment and it has on the past and and that's yes that has some impact on your outlook. Because you are investing for the future Ashish I don't know if you want to add anything to that.
No I think I think that's spot on I think we have incorporated those investments and our outlook and as we have consistently said we these investments are a little bit heavier this year compared to previous years because of the specific opportunities that we have identified two to further serve our students.
We havent given any specifics and through the quantum of dollars of investments, but they are in corporate and the outlook and as always we will continue to balance and make sure that we have the appropriate investments.
For the long term for our students.
Helpful and maybe sneak one more in.
Cash flows was exceptional I'm, obviously over $180 million and cash flow from ops.
And then you gave a little guide on the on the Capex side, So probably that'll take a little higher but just from a cash flow from operations perspective can you talk about the puts and takes and how should we think about 2021 versus 'twenty 'twenty.
And I think.
Okay.
Sure from a cash flow from operations.
As you said it was $180 million this year keep in mind, there were some timing related items that were positively impacted and that Henry and $80 million.
For the for the current year, so it's about a $39 million to $40 million was timing for this year.
But on a regular basis, there was no unique items and our cash flow, we do have capex had one and a half or 2%.
<unk> tried and acquisition this year.
And we also have some share repurchases and the first half so beyond that there is nothing unique in terms of our cash flows there's no significant lease liabilities on our balance sheet.
So I think cash flow should have pretty much normalized trends and once you account for some timing differences.
Perfect. That's helpful. Congrats on a great quarter, obviously and I will jump back in queue with any follow ups. Thank you.
You bet. Thank you.
And our next question will come from Alex Paris with Barrington Research. Please go ahead.
Hi, guys congratulations on the earnings beat yet another.
I got on the call late I apologize I'm juggling a couple of calls Tonight, but I was wondering what you had said about corporate.
Initiatives.
And what impact that had on enrollment and revenue per student and EBITDA in the fourth quarter.
Specifically in 2020 and general.
Well, let me just talk about it on a high level first what we're finding is again that there is and strong interest at both CTO and ARU and as we've said before seats use head.
More time to develop a process to work effectively with those students and so you know again as we said it was a teacher approximately 20 per cent of our students are now.
Types of students and ARU with some smaller percentage, but it is growing and.
And that really what Alex is.
Giving us the confidence and continue to invest and that and as a result, I think that we're hoping that this year will be we will see some positive enrollment and both of those as far as the other part of the question I know Ashish do you want on respond to that or anything that.
Sure and as far as the you know on the revenue per student Alex as we have said the revenue pursuing on a quarterly basis, we will continue to fluctuate, but by and large and as we do add more corporate partnerships. Obviously the revenue per student is lower but please recall and keep in mind that those students typically have been.
Retention.
And the cost associated to serve those students is typically lower so so those are the two things to keep in mind.
So less revenue per student, but the same or more.
Per student is that how I should think or not.
I mean, we don't necessarily talk in terms of EBITDA per share in but on the long term basis, yes, not immediately because those students do have a longer life. If you will and then retain better so yes over the long term debt is correct.
Okay great.
And then.
I got to ask this question since the last call.
There had been no.
No.
Shortly after the election, let's put it that way since then we've had some nominations and.
Gal, a cardona and secretary of Education, James Gabon was undersecretary.
And I asked you this question.
Three months ago, and I'm wondering if you have any additional thoughts.
Well again, you know, we don't know a lot about them, we'd read about their backgrounds and they both seem like.
Obviously, very experienced and and and good backgrounds, and we really do look forward to working with them or the the folks within the department that we typically have worked more closely with and the past. So we're looking forward to that again, we continue to watch for any information.
Formation, that's available to see if there are any changes on a different when they would happen and what those would be but at this point you know again were they they seem to be very dedicated people to our education and as are we and and really do look forward to working from.
Good I'm glad to hear that.
And and we did cover this topic on the last call. So I won't go into any further detail there I.
I guess the last question from me.
Just a few cats and dogs here is.
Is the AAU campuses the CPU campuses are open again.
I know that.
Percentage, but yeah. It is.
It is small and we have and ARU, we have started out on a limited basis and.
And we're excited to have that and as at this point She's correct me if I'm on I know because we're getting close but we havent, we havent done that yet at sea to you, but our plans to move forward pretty soon on that well.
That is correct.
Good.
And then I have some questions about the.
And initiatives that youre going to.
Additional spending this year investing and in areas like data and analytics and so on I'm sure you touched on it before I got on the call. So we could talk about that on a follow up call. Thank you.
Thank you Alex.
And our next question will come from Greg <unk> with Sidoti. Please go ahead.
Hey, guys. Thanks for taking my questions I, just wanted to dig a little bit into just the margin differential and AI University to you I think we talked about you know higher corporate partnership.
It might be one of the things given it's a higher EBITDA. It seem to you, but can you just kind of discuss maybe what over the next couple of years now that you have tried it.
And so he's got you've gained some scale at a are you what are some of the drivers that might be able to drive the margins closer.
Towards closing that gap towards a C. T and then in addition, I know the student experiences.
And priority at AIG, but just given the way you're structuring tried and.
As part of a are you is that going to hamper the margins over the long term.
Sure Great great questions, Greg and and his first from our perspective and yes at the top priority is really the student experiences, but having said that and <unk>.
A are you has we believe has the potential to have margins similar to assist you.
But it's really more focused on you know again, if if they are they're growing at a faster pace. They tend to not have as much margin as you would expect a growth company versus one that's that's that's more flat.
Second is scale and again, because we do invest heavily and our academic infrastructure and you may have the same infrastructure for a student body that is significantly larger again, because you know that's just the way the governance structure just for academic institutions, so and.
Duke grows it will its margin should increase and as far as adding trying to that again, we don't in fact, if anything we think that that actually and one of the reasons that we did that and again it would allow them to increase the breadth and depth of their programs are what you would again allow us to serve better the.
The demand of our potential students that were receiving so again it takes time to get that but certainly feel it has the potential could be similar to that but again the biggest factor and Greg is scale and and then obviously the time once you hit that for that to materialize.
Got it that's helpful. Thanks, a lot.
Thank you.
Thank you and our next question is a follow up from Daniel Moore with CJS Securities. Please go ahead.
Thank you again I was just hoping you could give a little bit more detail on the types of certificate and shorter duration program and so you tend to you intend to invest and.
Yeah, and I think shorter duration is a better way to characterize them, but these programs really are you.
And you find that there are a lot of students in particular and technology and and and health care.
That want to again and have the specific skill reskilling upskilling.
To allow them to advance and because there's a job opportunities there and many of them already have a you know.
A degree or again, and I see and opportunity that really requires the skill set versus some of the general education associated with that and we have again with art curriculum our faculty.
So we can provide excellent both curriculum and faculty for them to get the information they need to do that and but but but again several different areas and in particular, those two areas, where we've seen significant demand.
And do you anticipate the funding mix being any different in those areas and ER.
The mix of AUC to you today.
That's true Oh, let me.
Two of them by what you mean by the funding and then there was.
And the source of Ah and obviously the system now ultimate source on revenue.
Corporate purchases.
Again, that's a good question.
It will come from both and I think you know there'll be those who are looking to change jobs or get a job and a particular field and so it probably would come from the students and.
No that would help them as they advance their skills. So we don't know the combination of I don't know the percentage of combination, but we feel that it would come from both.
Okay, and lastly from me.
Just update on capital allocation priorities, obviously cash continues to build rapidly.
Share buybacks back on the table or might they be and in terms of M&A are you seeing more opportunities like tried and out there.
Well first I think that's always something that's there if we feel it's the right thing to do for the you know for the organization.
But again I think with the opportunities that are out there, especially as we go into a new administration and we want to make sure that our our strategy and in acquisition area is consistent with what or if theyre going to be any types of changes.
But I think hopefully well you know that will develop soon and I'll quickly as it has and prior administrations and I think that then obviously depend would impact. Your if you you know any type of buyback strategy would have but again. The priority is really is is to focus on those things that we do well which is educating our students.
Understood. Thanks, and look forward to the next update I appreciate it.
Thank you Dan.
And this will conclude our question and answer session also concluding today's call we'd like to thank you for attending today's presentation and at this time you may now disconnect your lines.
Okay.
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